Join our daily newsletter At The Bell to receive exclusive market insights
- The Food Revolution Group (FOD) has received binding commitments to undertake a $4 million placement
- More than 114 million fully paid shares will now be issued to institutional and sophisticated investors at 3.5 cents
- This price represents a 16 per cent discount to FOD’s closing price of 4.2 cents on November 30
- In addition to the placement, the company will be undertaking a share purchase plan (SPP) with aims to raise $500,000
- Eligible shareholders will be able to subscribe for up to $30,000 worth of shares at the same price as the placement
- FOD will use the funds to support the rollout of its Juice Lab wellness products and build brand awareness of its Original Juice Co and Juice Lab brands
- Company shares are down 4.76 per cent on the market and are trading at 4 cents
The Food Revolution Group (FOD) has received binding commitments to undertake a $4 million placement.
The company entered a trading halt on December 1 but did not disclose how much it would be raising or what the funds would go towards.
All up, 114,285,714 new fully paid ordinary shares will now be issued to institutional and sophisticated investors at 3.5 cents.
This price represents a 16 per cent discount to FOD’s closing price of 4.2 cents on November 30, and a 16 per cent discount to the 15-day volume-weighted average price of 4.16 cents.
Subject to shareholder approval, company director Matt Bailey will invest $100,000.
Shares are expected to settle on December 9 and be allocated the next day.
In addition to the placement, FOD will be undertaking a share purchase plan (SPP) with aims to raise $500,000.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares at the same price as the placement of 3.5 cents.
FOD has the right to scale back applications or accept oversubscriptions.
The company will use the funds to support the rollout of its Juice Lab wellness products, build brand awareness of its Original Juice Co and Juice Lab brands, and for general working capital.
“The funds will be used to improve the operational performance and efficiencies of our Mill Park facility as well as increase the profile of our Original Juice Co and Juice Lab products,” CEO and Managing Director Tony Rowlinson said.
“With the global trend for preventative medicines, foods and beverages impacted by COVID-19, we are expecting to be a lead player within the wellness/functional beverage market, being first to market with our ‘All Natural plant based’ range,” he added.
FOD is down 4.76 per cent on the market and shares are trading at 4 cents at 1:50 pm AEDT.
